Gaussin : 26 June 2019

PRESS RELEASE

26 June 2019

Gaussin announces €11.3 M licensing revenue in the

first half of 2019

An increase with a very positive impact on the net profit of the Group

Gaussin Manugistique(ALGAU - FR0010342329) has announced a major development in its business model with the momentum gained by licence sales. During the first half of 2019, licences and licensing fees accounted for €11.276 million, compared to nothing at all in the first half of 2018.

That strong growth in such revenue supports the licensing strategy put in place by Gaussin to capitalise on its technology know-how, particularly in the area of driverless vehicles. It is of note that licensing revenue carries practically no related costs, and thus essentially makes a direct contribution to operating profits.

Licensing revenue: strong growth in the first half of 2019, with €11.276 million

The international licensing strategy is showing very strong growth. Thus, after a first half of 2018 with no licensing revenue, Gaussin experienced its first successes in the second half of 2018 with revenue of €400,000, picking up speed in the first half of 2019.

Thus, the total proceeds from the sale of licenses in the first six months of 2019 stand at €11.276 million, principally derived from the customer ST Engineering with PSA Port Singapore Authority (see release of 20 March 2019) and the licence granted to Qatar Railways Company (see release of 24 June 2019).

In €K		2018	2019	Total
	H1		H2	H1
LICENSING REVENUE	0		400	11,276	11,676

To date, total licensing revenue is €11.676 million, an amount that is almost entirely added to operating profit, since licensing carries virtually no direct cost.

The new revenue is a sign of the success of the industrial research and development efforts of the Group in past years. NB: in accordance with French accounting standards, licensing revenue is not included in the turnover of the company, but in other current operating income.

What is more, the licences will be supplemented by royalties equal to a percentage of the turnover achieved by the licensee with vehicle deliveries after these are completed. That will enable the Group to have recurrent income without having to manage the issues of large-scale manufacturing engineering (raw materials variations, currency variations etc.), making group operations more predictable and more profitable.

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Licensing - a very advantageous business model:

The initiation of this licensing business complements Gaussin's conventional business of selling

equipment. The strategy will enable Gaussin to disseminate its technology far faster than if it were to operate it on its own, particularly by benefiting from the industrial experience of its partners and their local operating experience and legitimacy. Thus, exclusive rights could be granted by product or geographical area. Further, licensing allows Gaussin to avoid all the issues relating to the financing of working capital requirements, purchases and production.

These licensing agreements confirm the value of the know-how and patents of the Gaussin Group in the area of driverless vehicles applied to electrical utility vehicles that are automated, heavy, rugged and reliable.

The model also confirms the interest major international industrial groups are showing in the technology developed by Gaussin for its new range of products intended for the port, airport, logistics, manufacturing and people mobility industries.

Thus, the grant of a license to ST Engineering for marketing AGV driverless port vehicles enabled that large industrial group from Singapore to secure a first and very significant order for 86 vehicles from PSA Port of Singapore Authority in March 2019. This type of partnership is thus a win-win arrangement in that it enables the licensee to be selected in international tender processes with the help of Gaussin technology.

The terms of licensing agreements vary depending on the different agreements signed by the company. For example, the exclusive licensing agreement signed with ST Engineering for the marketing of AGVs to Singapore has a twenty-year term to address future volumes estimated to be 2000 to 3000 AGVs including the maintenance period.

This new business model will enable the company to deploy its offer faster, the more so since discussions are currently under way for eight new licensing agreements with major global groups. All these events demonstrate the attractiveness of the technology developed by Gaussin, particularly for driverless vehicles.

e-AB « electric-Autonomous Bus » 100% electric 100% autonomous

https://youtu.be/oYxqCwi34yk

The Gaussin group has been shortlisted by the Roads and Transport Authority (RTA) of Dubai as a finalist in the Dubai World Challenge for Self-Driving Transport, a global competition for driverless passenger transport. The last stage of the contest is scheduled for September 2019 in Dubai, and on 15 October, the winner will be awarded the exclusive right to operate in Dubai and a cash prize of USD 3 million.

Instagram Dubai World Challenge :https://www.instagram.com/p/By7LzErhPld/

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Upcoming event

General meeting of members on 28 June 2019

Consolidated financial statements for H1 on 3 September

JDL JOURNÉES DU LEVAGE 25 to 27 September 2019

Dubai World Challenge from 15 to 16 October

INTERAIRPORT MUNICH 9 to 12 October 2019

SIA BELFORT 13 and 14 November 2019

About Gaussin

GAUSSIN MANUGISTIQUE® is an engineering company that designs, assembles and sells innovative products and services in the transport and logistics field. Its know-how encompasses cargo and passenger transport, autonomous technologies allowing for self-driving solutions such as Automotive Guided Vehicles, and the integration all types of batteries, electric and hydrogen fuel cells in particular. With more than 50,000 vehicles worldwide, GAUSSIN Manugistique enjoys a strong reputation in four fast-expanding markets: port terminals, airports, logistics and people mobility. The group has developed strategic partnerships with major global players in order to accelerate its commercial penetration: Siemens Postal, Parcel & Airport Logistics in the airport field, Bolloré Ports and ST Engineering in ports and Bluebus for people mobility. Gaussin Manugistique® has been listed on Euronext Growth in Paris since 2010.

More information on www.gaussin.com.

	Contacts
Ulysse Communication
Christophe Gaussin, [e-mail]	Nicolas Daniels,[e-mail]
+33(0)3.84.46.13.45	+33(0)6.63.66.59.22

For more information about Gaussin, please go to www.gaussin.com

• This document may containforward-looking information. Such forward-looking information refers to future prospects, developments and strategies of Gaussin Manugistique and is based on analysis of expected future results and estimates of amounts that are not yet determinable to date. Forward-looking information naturally contains elements of risk and uncertainty relative to events and therefore dependent on circumstances which may or may not occur in the future. Gaussin Manugistique draws your attention to the fact that forward-looking information provides no guarantee concerning its future performance or financial situation, financial results or trends in the sector in which Gaussin Manugistique operates, and which may significantly differ from those proposed or suggested in the forward-looking statements contained in this presentation. Furthermore, even though the financial position of Gaussin Manugistique, its performance and trends in the sector in which Gaussin Manugistique operates comply with the forward-looking information contained in this presentation, such performance or trends may not be a reliable indication of the company's future performance or prospects. Gaussin Manugistique is not committed to updating or confirming analysts' expectations or estimates or to publicly correcting any information or event in order to reflect an event or circumstance eventually occurring following this presentation.

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